Chapter 3: Numerical Descriptive Measures MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statistics is not a measure of central tendency? A) Arithmetic mean B) Q3 C) Mode D) Median 1) 2) Which of the arithmetic mean, median, mode, and geometric mean are resistant measures of central tendency? A) The arithmetic mean and median only B) The mode and arithmetic mean only C) The median and mode only D) The arithmetic mean and mode only 2) 3) Which of the following is the easiest to compute? A) The sum of the values B) The arithmetic mean C) The mode D) The median 3) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-1 Health care issues are receiving much attention in both academic and political arenas. A sociologist recently conducted a survey of citizens over 60 years of age whose net worth is too high to qualify for Medicaid. The ages of 25 senior citizens were as follows: 60 61 62 63 64 65 66 68 68 69 70 73 73 74 75 76 76 81 81 82 86 87 89 90 92 4) Referring to Scenario 3-1, calculate the arithmetic mean age of the senior citizens to the nearest hundredth of a year. 4) 5) Referring to Scenario 3-1, determine the median age of the senior citizens. 5) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 6) True or False: The median of the values 3.4, 4.7, 1.9, 7.6, and 6.5 is 1.9. A) True B) False 1 6) 7) True or False: The median of the values 3.4, 4.7, 1.9, 7.6, and 6.5 is 4.05. A) True B) False 7) 8) True or False: In a sample of size 40, the sample mean is 15. In this case, the sum of all observations in the sample is X i = 600. 8) 9) True or False: The median of a data set with 20 items would be the average of the 10th and the 11th items in the ordered array. A) True B) False 9) A) True B) False SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-3 The ordered array below represents the number of vitamin supplements sold by a health food store in a sample of 16 days. 19, 19, 20, 20, 22, 23, 25, 26, 27, 30, 33, 34, 35, 36, 38, 41 Note: For this sample, the sum of the values is 448, and the sum of the squared di erences between each value and the mean is 812. 10) Referring to Scenario 3-3, the arithmetic mean of the number of vitamin supplements sold in this sample is ________. 10) 11) Referring to Scenario 3-3, the median number of vitamin supplements sold in this sample is ________. 11) SCENARIO 3-5 The rates of return of a Fortune 500 company over the past 15 years are: 3.17%, 4.43%, 5.93%, 5.43%, 7.29%, 8.21%, 6.23%, 5.23%, 4.34%, 6.68%, 7.14%, -5.56%, -5.23%, -5.73%, -10.34% 12) Referring to Scenario 3-5, compute the arithmetic mean rate of return per year. 2 12) SCENARIO 3-7 In a recent academic year, many public universities in the United States raised tuition and fees due to a decrease in state subsidies. The change in the cost of tuition, a shared dormitory room, and the most popular meal plan from the previous academic year for a sample of 10 public universities were as follows: $1,589, $593, $1,223, $869, $423, $1,720, $708, $1425, $922 and $308. 13) Referring to Scenario 3-7, what is the mean and median change in the cost? 13) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 14) In a right-skewed distribution A) the median is greater than the arithmetic mean. B) the median equals the arithmetic mean. C) the median is less than the arithmetic mean. D) none of the above. 14) 15) True or False: The coefficient of variation measures variability in a data set relative to the size of the arithmetic mean. A) True B) False 15) 16) True or False: The coefficient of variation is a measure of central tendency in the data. A) True B) False 16) 17) True or False: The coefficient of variation is a measure of relative variation. A) True B) False 17) 3 SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-1 Health care issues are receiving much attention in both academic and political arenas. A sociologist recently conducted a survey of citizens over 60 years of age whose net worth is too high to qualify for Medicaid. The ages of 25 senior citizens were as follows: 60 61 62 63 64 65 66 68 68 69 70 73 73 74 75 76 76 81 81 82 86 87 89 90 92 18) Referring to Scenario 3-1, calculate the skewness statistic for the age of the senior citizens accurate to two decimal places. 18) 19) Referring to Scenario 3-1, what type of shape does the distribution of the sample appear to have? 19) 20) Referring to Scenario 3-1, calculate the kurtosis statistic for the age of the senior citizens accurate to two decimal places. 20) 21) Referring to Scenario 3-1, does the distribution of the sample appear to be lepokurtic or platykurtic? 21) 22) Referring to Scenario 3-1, calculate the variance of the ages of the senior citizens correct to the nearest hundredth of a year squared. 22) 23) Referring to Scenario 3-1, calculate the standard deviation of the ages of the senior citizens correct to the nearest hundredth of a year. 23) 24) Referring to Scenario 3-1, calculate the coe cient of variation of the ages of the senior citizens. 24) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 25) True or False: A population with 200 elements has an arithmetic mean of 10. From this information, it can be shown that the population standard deviation is 15. A) True B) False 4 25) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-3 The ordered array below represents the number of vitamin supplements sold by a health food store in a sample of 16 days. 19, 19, 20, 20, 22, 23, 25, 26, 27, 30, 33, 34, 35, 36, 38, 41 Note: For this sample, the sum of the values is 448, and the sum of the squared di erences between each value and the mean is 812. 26) Referring to Scenario 3-3, the skewness statistic of the number of vitamin supplements sold in this sample is ________. 26) 27) Referring to Scenario 3-3, is the number of vitamin supplements sold in this sample right- or left- skewed? 27) 28) Referring to Scenario 3-3, the kurtosis statistic of the number of vitamin supplements sold in this sample is ________. 28) 29) Referring to Scenario 3-3, is the number of vitamin supplements sold in this sample lepokurtic or platykurtic? 29) 30) Referring to Scenario 3-3, the range of the number of vitamin supplements sold in this sample is ________. 30) 31) Referring to Scenario 3-3, the variance of the number of vitamin supplements sold in this sample is ________. 31) 32) Referring to Scenario 3-3, the standard deviation of the number of vitamin supplements sold in this sample is ________. 32) 33) Referring to Scenario 3-3, the coe cient of variation of the number of vitamin supplements sold in this sample is ________ percent. 33) 34) Referring to Scenario 3-3, what type of shape does the distribution of the sample appear to have? 34) 5 SCENARIO 3-5 The rates of return of a Fortune 500 company over the past 15 years are: 3.17%, 4.43%, 5.93%, 5.43%, 7.29%, 8.21%, 6.23%, 5.23%, 4.34%, 6.68%, 7.14%, -5.56%, -5.23%, -5.73%, -10.34% 35) Referring to Scenario 3-5, what is the range of the rate of return? 35) 36) Referring to Scenario 3-5, what is the shape of the distribution for the rate of return? 36) SCENARIO 3-7 In a recent academic year, many public universities in the United States raised tuition and fees due to a decrease in state subsidies. The change in the cost of tuition, a shared dormitory room, and the most popular meal plan from the previous academic year for a sample of 10 public universities were as follows: $1,589, $593, $1,223, $869, $423, $1,720, $708, $1425, $922 and $308. 37) Referring to Scenario 3-7, what is the standard deviation of the change in the cost? 37) 38) Referring to Scenario 3-7, what is the coe cient of variation of the change in cost? 38) 39) Referring to Scenario 3-7, what is the skewness statistic of the change in the cost? 39) 40) Referring to Scenario 3-7, is the change in the cost right- or left-skewed? 40) 41) Referring to Scenario 3-7, what is the kurtosis statistic of the change in the cost? 41) 42) Referring to Scenario 3-7, is the change in the cost lepokurtic or platykurtic? 42) 43) Referring to Scenario 3-7, what are the (absolute values of) the Z scores of the change in cost? 43) 6 44) Referring to Scenario 3-7, are the data skewed? If so, how? 44) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 45) In general, which of the following descriptive summary measures cannot be easily approximated from a boxplot? A) The variance B) The median C) The range D) The interquartile range 45) 46) The smaller the spread of scores around the arithmetic mean, A) the smaller the coefficient of variation. B) the smaller the standard deviation. C) the smaller the interquartile range. D) All the above. 46) 47) In right-skewed distributions, which of the following is the correct statement? A) The distance from Q1 to Q2 is greater than the distance from Q2 to Q3. B) The distance from Q1 to Q2 is less than the distance from Q2 to Q3. C) The mode is greater than the arithmetic mean. D) The arithmetic mean is less than the median. 47) 48) In left-skewed distributions, which of the following is the correct statement? A) The distance from the smallest observation to Q2 is less than the distance from Q2 to the largest observation. B) The distance from Q1 to Q3 is twice the distance from the Q1 to Q2. C) The distance from the smallest observation to Q1 is larger than the 48) 49) Which of the following is NOT sensitive to extreme values? A) The standard deviation B) The coefficient of variation C) The range D) The interquartile range 49) distance from Q3 to the largest observation. D) The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3. 7 50) A manufacturer of ashlight ba eries took a sample of 130 ba eries from a day's production and used them continuously until they were drained. The number of hours until failure are recorded. Given below is the boxplot of the number of hours it took to drain each of the 130 ba eries. The distribution of the number of hours is A) symmetrical. C) left-skewed. 50) B) right-skewed. D) none of the above SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-1 Health care issues are receiving much attention in both academic and political arenas. A sociologist recently conducted a survey of citizens over 60 years of age whose net worth is too high to qualify for Medicaid. The ages of 25 senior citizens were as follows: 60 61 62 63 64 65 66 68 68 69 70 73 73 74 75 76 76 81 81 82 86 87 89 90 92 51) Referring to Scenario 3-1 determine the rst quartile of the ages of the senior citizens. 51) 52) Referring to Scenario 3-1 determine the third quartile of the ages of the senior citizens. 52) 8 53) Referring to Scenario 3-1, determine the interquartile range of the ages of the senior citizens. 53) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 54) Referring to Scenario 3-1, determine which of the following is the correct statement. A) The mean age of senior citizens sampled is 73.5 years of age. B) The middle 50% of the senior citizens sampled are between 65.5 and 73.0 years of age. C) One fourth of the senior citizens sampled are below 65.5 years of age. D) All of the above are correct. 54) 55) Referring to Scenario 3-1, identify which of the following is the correct statement. A) The middle 50% of the senior citizens sampled are between 65.5 and 73.0 years of age. B) 25% of the senior citizens sampled are older than 81.5 years of age. C) One fourth of the senior citizens sampled are below 64 years of age. D) All of the above are correct. 55) 56) True or False: In a set of numerical data, the value for Q3 can never be 56) smaller than the value for Q1. A) True B) False 57) True or False: In a set of numerical data, the value for Q2 is always halfway between Q1 and Q3. A) True B) False 57) 58) True or False: If the distribution of a data set were perfectly symmetrical, the distance from Q1 to the median would always equal the distance from Q3 to the median in a boxplot. A) True B) False 58) 59) True or False: In right-skewed distributions, the distance from Q3 to the largest value is greater than the distance from the smallest observation to Q1. A) True B) False 59) 9 60) True or False: In left-skewed distributions, the distance from the smallest value to Q1 is greater than the distance from Q3 to the largest value. A) True B) False 60) 61) True or False: A boxplot is a graphical representation of a five-number summary. A) True B) False 61) 62) True or False: The five-number summary consists of the smallest value, the first quartile, the median, the third quartile, and the largest value. A) True B) False 62) 63) True or False: In a boxplot, the box portion represents the data between the first and third quartile values. A) True B) False 63) 64) True or False: The line drawn within the box of the boxplot always represents the arithmetic mean. A) True B) False 64) 65) True or False: The line drawn within the box of the boxplot always represents the median. A) True B) False 65) 66) True or False: In exploratory data analysis, a boxplot can be used to illustrate the median, quartiles, and extreme values. A) True B) False 66) 67) True or False: The interquartile range is a measure of variation or dispersion in a set of data. A) True B) False 67) 68) True or False: The interquartile range is a measure of central tendency in a set of data. A) True B) False 68) 10 SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-3 The ordered array below represents the number of vitamin supplements sold by a health food store in a sample of 16 days. 19, 19, 20, 20, 22, 23, 25, 26, 27, 30, 33, 34, 35, 36, 38, 41 Note: For this sample, the sum of the values is 448, and the sum of the squared di erences between each value and the mean is 812. 69) Referring to Scenario 3-3, the rst quartile of the number of vitamin supplements sold in this sample is ________. 69) 70) Referring to Scenario 3-3, the third quartile of the number of vitamin supplements sold in this sample is ________. 70) 71) Referring to Scenario 3-3, the interquartile range of the number of vitamin supplements sold in this sample is ________. 71) 72) Referring to Scenario 3-3, the ve-number summary of the data in this sample consists of ________, ________, ________, ________, ________. 72) 73) Referring to Scenario 3-3, construct a boxplot for the data in this sample. 73) SCENARIO 3-5 The rates of return of a Fortune 500 company over the past 15 years are: 3.17%, 4.43%, 5.93%, 5.43%, 7.29%, 8.21%, 6.23%, 5.23%, 4.34%, 6.68%, 7.14%, -5.56%, -5.23%, -5.73%, -10.34% 74) Referring to Scenario 3-5, construct a boxplot for the rate of return. 11 74) SCENARIO 3-7 In a recent academic year, many public universities in the United States raised tuition and fees due to a decrease in state subsidies. The change in the cost of tuition, a shared dormitory room, and the most popular meal plan from the previous academic year for a sample of 10 public universities were as follows: $1,589, $593, $1,223, $869, $423, $1,720, $708, $1425, $922 and $308. 75) Referring to Scenario 3-7, what is the ve-number summary of the change in the cost? 75) 76) Referring to Scenario 3-7, what is the interquartile range of the change in the cost? 76) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 77) In a perfectly symmetrical bell-shaped "normal" distribution A) the arithmetic mean equals the mode. B) the median equals the mode. C) the arithmetic mean equals the median. D) All the above. 77) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-9 The following table represents the assets in billions of dollars of the five largest bond funds sometime in the past. Bond Fund Assets (Billions $) PIMCO Total Return Fund 246 Vanguard Total Bond Market Index Fund 110 Templeton Global Bond Fund 57 Vanguard Total Bond Market Index Fund II 56 Vanguard Inflation-Protected Securities 43 78) Referring to Scenario 3-9, what is the mean for this population of the five largest bond funds? 12 78) 79) Referring to Scenario 3-9, what are the variance and standard deviation for this population? 79) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 80) According to the empirical rule, if the data form a "bell-shaped" normal distribution, ________ percent of the observations will be contained within 2 standard deviations around the arithmetic mean. A) 88.89 B) 68.26 C) 93.75 D) 95.44 80) 81) According to the empirical rule, if the data form a "bell-shaped" normal distribution, ________ percent of the observations will be contained within 3 standard deviations around the arithmetic mean. A) 95.0 B) 99.7 C) 68.26 D) 75.00 81) 82) According to the Chebyshev rule, at least 93.75% of all observations in any data set are contained within a distance of how many standard deviations around the mean? A) 4 B) 3 C) 1 D) 2 82) 83) According to the Chebyshev rule, at least what percentage of the observations in any data set are contained within a distance of 2 standard deviations around the mean? A) 75% B) 67% C) 88.89% D) 95% 83) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-11 Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over a 10-week period sometime in the past. Dow Jones S&P 500 10,42 10,11 10,47 10,59 11,21 10,93 11,13 10,31 1 0 9,862 5 9,920 2 3 3 4 6 1,379 1,356 1,343 1,410 1,389 1,463 1,529 1,499 1,516 1,355 84) Referring to Scenario 3-11, what is the sample covariance between the DJIA and the S&P 500 index? 13 84) 85) Referring to Scenario 3-11, what is the sample correlation coe cient between the DJIA and the S&P 500 index? 85) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 86) Referring to Scenario 3-11, how will you classify the linear relationship between the DJIA and the S&P 500 index? A) Moderate B) Weak C) Strong D) No relationship 86) 87) Referring to Scenario 3-11, for the week when the DJIA is high, you will expect the S&P index in that week to A) be low. B) be about the same value as the DJIA. C) be high. D) have no relationship with the DJIA value. 87) 88) Referring to Scenario 3-11, you will expect an increase in the DJIA to be associated with A) no predictable change in the S&P 500 index. B) an increase in the S&P 500 index. C) a decrease in the S&P 500 index. D) no predictable change in the DJIA. 88) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. SCENARIO 3-13 Energy drink consumption has continued to gain in popularity since the 1997 debut of Red Bull, the current leader in the energy drink market. Given below are the exam scores and the number of 12-ounce energy drinks consumed within a week prior to the exam of 10 college students. Exam Scores Number of Drinks 75 92 84 64 64 86 81 61 73 93 5 3 2 4 2 7 3 0 1 0 89) Referring to Scenario 3-13, what is the sample covariance between the exam scores and the number of energy drinks consumed? 14 89) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 90) Referring to Scenario 3-13, how will you classify the linear relationship between the exam scores and the number of energy drinks consumed? A) Moderate B) Strong C) No relationship D) Weak 90) 91) Referring to Scenario 3-13, for a student who has consumed a high number of energy drinks within the week prior to the exam, you will expect his/her exam score to A) not be noticeably different than the exam score had he/she not consumed as much. B) be noticeably higher than the exam score had he/she not consume as much energy drink. C) not be noticeably different than the amount of energy drinks that he/she consumed. D) be noticeably lower than the exam score had he/she not consume as much energy drink. 91) 92) Referring to Scenario 3-13, you will expect a decrease in the amount of energy drink consumed within the week prior to the exam to be associated with A) an increase in the exam score. B) no predictable change in the exam score. C) no predictable change in the amount of energy drink consumed after the exam. D) a decrease in the exam score. 92) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 93) Referring to Scenario 3-13, what is the sample correlation coe cient between the exam scores and the number of energy drinks consumed? 15 93) Answer Key Testname: CH3-NUMERICAL DESCRIPTIVE MEASUR ES 1) B 2) C 3) C 4) 74.04 years 5) 73 years 6) B 7) B 8) A 9) A 10) 28 11) 26.5 12) 2.48% 13) $978, $895.5 14) C 15) A 16) B 17) A 18) 0.36 19) Slightly positive or right-skewed 20) -1.01 21) lepokurtic 22) 94.96 years2 23) 9.74 years 24) 13.16% 25) B 26) 0.29 27) Right-skewed 28) -1.32 29) platykurtic 30) 22 31) 54.13 32) 7.36 33) 26.3% 34) Slightly positive or right-skewed 35) 18.55% 36) Left-skewed 37) $491.8 38) 50.29% 39) 0.22 40) Right-skewed 41) -1.32 42) platykurtic 43) 1.24, 0.78, 0.50, 0.22, 1.13, 1.51, 0.55, 0.91, 0.11, 1.36 44) skewed to the right 45) A 16 Answer Key Testname: CH3-NUMERICAL DESCRIPTIVE MEASUR ES 46) D 47) B 48) C 49) D 50) B 51) 65.5 years 52) 81.5 years 53) 16 years 54) C 55) B 56) A 57) B 58) A 59) A 60) A 61) A 62) A 63) A 64) B 65) A 66) A 67) A 68) B 69) 20 70) 35 71) 15 72) 19, 20, 26.5, 35, 41 73) 17 Answer Key Testname: CH3-NUMERICAL DESCRIPTIVE MEASUR ES 74) 75) $308, 76) $832 $593, $895.5, $1425, and $1720 77) D 78) $102.4 billions 79) 5,684.24 squared billion dollars, $75.39 billions, respectively 80) D 81) B 82) A 83) A 84) 31594.7333 85) 0.9274 86) C 87) C 88) B 89) 3.7667 90) D 91) A 92) B 93) 0.1450 18